JSC “Ukrzaliznytsia” plans to introduce new tariffs for cargo transportation

Joint-stock company “Ukrainian Railways” wants to change the model of tariff formation for cargo transportation by the end of this year, according to which the company has been working since 1997. Otherwise, this company will not be able to close the year with profits.

The Chairman of the Board of the company E.A. Lyashchenko informed about this in an interview with the “Forbes” publication.

According to him, for 2024, “Ukrzaliznytsia” does not plan to increase freight tariffs, but to harmonize them.

“This involves a complete change of their calculation model. Yes, we want to significantly simplify the system of tariff formation, which consists of five different classes and more than 20 coefficients,” he explained.

In particular, among the proposals: a single tariff for empty wagons and division by classes of transportation depending on the technology of transportation, and not on the specifics of the product or the business that orders our wagons.

As E.A. Lyashchenko emphasized, the harmonization of tariffs can bring the company an additional 3-4 billion hryvnias. by the end of the year, depending on when the Government approves it.

For businesses, costs may increase by approximately 7% in total. “Ukrzaliznytsia” has already submitted the tariff reform proposal to the relevant ministry and is waiting for a response.

All goods for transportation by “Ukrzaliznytsia” are divided into four groups: 1st class – ore, coal, cement; II class – grains, crude oil; III class – ferrous metals, scrap metal and oil products; the rest, including construction materials, are extracurricular.

The last time the company raised tariffs for cargo transportation was in July 2022 – immediately by 70%.

The Cabinet of Ministers of Ukraine, by order of November 17, 2023 No. 1166-r, approved the consolidated financial plan of JSC “Ukrzaliznytsia” for 2024, in which it was assumed that the company would receive losses at the level of UAH 12.6 billion. The company plans to cover them at the expense of the developed break-even plan, which provides for an increase in tariffs.